During Wednesday's Lightning Round segment of Mad Money one caller asked Jim Cramer about the rare earth miner MP Materials (MP) . "I'm happy with their business and I want you to stick with it," was Cramer's response.
When we reviewed the charts of MP on April 7 we wrote that "earth minerals are indeed key to our modern way of life and our military security. The chart of MP, however, is currently suggesting we could see further price weakness. MP could test the lower end of support around $30 and a break of that area could precipitate further declines. Keep MP on your market minder and shopping list."
Let's check out the charts again.
In the daily bar chart of MP, below, we can see that prices weakened into early May before new buying materialized. Prices tested but held the rising 200-day moving average line.
The On-Balance-Volume (OBV) line declined from March to May as prices weakened but the line has not improved much from May even though prices rallied about $15.
The Moving Average Convergence Divergence (MACD) oscillator did rally above the zero line but it has narrowed again and is close to a bearish downside crossover.